Back Office Functions for Hedge Funds


Background

The back office functions for Hedge Funds are substantially different from normal back office functions because:-

  • A wider variety of instruments are used
  • Reporting and control are more critical
  • Changes are faster and more complex
  • Fewer staff are usually available
  • Hedge Fund Managers may be unaware of Back Office processes and the needs and problems that can arise

Given the typically smaller size of Hedge Fund Back Offices there is a need for both Back Office personnel and Hedge Fund Managers to understand all aspects of the Back Office processes in order to ensure that information given to traders, Hedge Fund Managers, the investors and others involved is both timely and accurate. In addition, knowledge of the process is essential to minimise errors and to keep transaction costs under control.

This 2-day course involves all areas of likely Hedge Fund Back Office Operations.

Delegates

  • Hedge Fund Promoters
  • Back Office Managers and staff working or intending to work in Hedge Funds
  • Hedge Fund Managers
  • Customer Relationship Managers and Prime Brokers servicing the Hedge Fund Community
  • Compliance Officers
  • IT Managers and Systems Developers
  • Accountants and Auditors

    A basic knowledge of Equities, Bonds, Futures and Options or Derivatives is assumed as well as some familiarity as to what the Back Office does. However, delegates are not expected to have detailed knowledge of all areas covered.

    Delegates unfamiliar with Futures or Options are recommended to attend our Futures Primer and/or Options Primer courses according to their current level of knowledge.

  • Content

    General Issues

    -Types of hedge funds.  Background to the industry.

    -You are on your own. How to survive without the support structure of a big firm.

    -Soft Commissions: What services can your brokers provide for you under various regulatory regimes

    -Identifying key issues

    -Critical control factors and information needed

    -Example organisation structures.

    Prime Broker Arrangements

    -Selecting a prime broker. What to expect in terms of services, information and fees.

    -Working with a prime broker. Typical information.

    Stock Borrowing & Funding

    -Repos

    -Collateral management

    -Interest calculations

    -Leverage methods and control

    Product overview and the issues each product will cause

    Futures & Options

    -Trade reporting to the brokers

    -Keeping track of commission costs

    -How to calculate spaw margining

    -Importance of FIFO

    -Reconciliations

    CFDs

    -What are CFDs

    -Why they are used

    -Margining requirement

    -Tracking of interest, stock borrowing costs

    -Corporate actions

    Bonds

    -Clean and dirty prices

    -Repos

    -Interest Calculations: how to use Bloomberg to calculate settlement amounts

    OTC Derivatives

    -Validating the documentation

    -Collateral

    Real Management

    -Definition of terms traders will use

    -Managing fx risk

    -Importance of sound and timely reconciliations

    Controlling the Traders

    -Blotters and tickets

    -Sign off

    -A working partnership

    -Common errors or mishaps

    Funds Control

    -Processing and accounting for cash movements

    -The importance of cashflow management

    Investor Relations

    -Trade allocation

    -Performance statistics

    Regulatory Requirements - An Overview





    Todays Date:


    Duration 2 days
    Available as an in-house course







    Investment Education PLC
    45 Old Hall Road, Manchester M7 4JF, United Kingdom
    Tel:+44 (0)161 832 3800
    Email: mail@investmentEducation.net
    Registered in England Number 2129160
    VAT Registered Number GB 480 2112 85



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